Saving money for a group holiday

biffta

Myself and a group of friends, roughly 10, would like to go on holiday together next year. As such we'd like to start putting a few quid aside each month into a shared pot which we will then use to purchase the holiday. It'll probably be about £20 each a month and I think everyone is happy to use a direct debit.

What's the best way to do this? It seems like far too much hassle to create a new account with everybody's name on but also seems like it might get a bit awkward if we allocate a single person and have everyone pay into their private account.

I've Googled about for shared account or temporary money pots but haven't really found much and I just wondered if any smart people here had some suggestions!

cheers!

crispy_chris

do NOT get a joint account with them. their financial history will become linked with yours and any problems they have will show on your credit file.

Could people not all instant access saving accounts with their respective banks and just save individually and just pool it in 1 person's account when you want to book the holiday?

biffta

Yes, I suppose we could do that. I think the logic behind a group thing was it was thought more likely that the holiday will actually go ahead. If we all save individually it'll be a lot easier to pull out/find and excuse in a year's time.

onlypaddy

crispy_chris wrote: »

do NOT get a joint account with them. their financial history will become linked with yours and any problems they have will show on your credit file.

Could people not all instant access saving accounts with their respective banks and just save individually and just pool it in 1 person's account when you want to book the holiday?

Agreed, you will struggle to find an account that will allow that many signees anyway. And you will become linked to all of them and you dont know who has a chequered past.

Why not just agree on a target budget and save individually. Then you can each pay off your share at the time of booking

onlypaddy

biffta wrote: »

Yes, I suppose we could do that. I think the logic behind a group thing was it was thought more likely that the holiday will actually go ahead. If we all save individually it'll be a lot easier to pull out/find and excuse in a year's time.

Thats just the way things are. No matter what way you do it, if people want to pull out they will find a way. Whats preventing them from just not paying into the pot?

biffta

onlypaddy wrote: »

Whats preventing them from just not paying into the pot?

It's just if there is some momentum from a few it will hopefully spread to others and once they've started they're more likely to stay in. What would be ideal was if there was some kind of internet account/pot that everyone could pay into and you could see the running balance along with who'd contributed. Very much like a lot of charity collection sites I've seen in the past. Something like that but obviously for not quite a worth cause. ;-)

Rafter

Not easy - particularly if there is interest on the account you would need to pay tax as a group - probably a trust. To open such an account you will need a trust agreement and all kinds of legal work.

Best idea I can come up with would be to find out the best 'regular saver' account out there and get some application forms for everyone to pay a regular amount in by standing order - might achieve what you are hoping without creating a whole heap of problems.

Otherwise one person is going to have to set up the account and hope everyone trusts them.

R.

CLAPTON

20 per month for a year is £120
what sort of holiday were you planning?

onlypaddy

CLAPTON wrote: »

20 per month for a year is £120
what sort of holiday were you planning?

erm....how long is your year??